So how much did Warren Buffett collect in dividend income in 2019? Thanks for watching Sign up for Robinhood with this link and we both get a free stock! In other words, just how much dividend income do you need to live comfortably during your golden years, and how large of a portfolio is required? The end result is I have Buffett's investment portfolio collecting $4,720,296,790 (that's more than $4.7 billion) in dividend income this year. The bulk of the $3.8 billion in dividend payouts Berkshire Hathaway is expected to receive will come from the following six companies: Apple's role as Buffett's dividend kingpin should come as no surprise, considering that it makes up 46.2% of Berkshire Hathaway's invested assets. The price/earnings ratio of … This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. For instance, companies that pay a regularly dividend can help assuage investor concerns when the stock market turns south, as it has over the past week and change. Having multiple offerings within its universe of products and an extremely loyal customer base allows Apple to pay out one of the largest dividends on the planet, in terms of actual dollars being dispersed. More: Here's how to set yourself up to earn $1,000 in monthly retirement dividends. For instance, smartphones have practically become a basic-need good for consumers in the U.S. -- and there's no company with greater smartphone market share in the United States than Apple. Berkshire Hathaway CEO Warren Buffett is easily one of the greatest investing minds of our generation. They're, therefore, the perfect beacons of profitability to attract long-term investors. Ah, Warren Buffett. In total, Buffett has 10 companies that are providing Berkshire Hathaway with more than $100 million in dividend income this year: Perhaps no surprise is that five of Buffett's top-10 dividend stocks hail from the financial sector. For instance, Coca-Cola has been a Berkshire Hathaway holding for more than three decades, while American Express has been a consistent holding for more than 25 years. The results showed a night-and-day difference, with dividend-paying stocks averaging a 9.5% annual gain over four decades and stocks that didn't pay dividends gaining only 1.6% on an annual basis over the same period. Image source: The Motley Fool. At the age of 26, Warren Buffett had already accumulated a “retirement fund” of around $174,000 ($1.54 million in 2018 dollars) having been earning and investing money since he … There are a lot of things that have made Buffett successful over the years. Although the yield an investor earns on their dividend stocks is likely to be far less than the actual downward move in the stock market during a correction, it certainly helps lessen the sting. 1. The superficially exciting number will be when Coca-Cola’s quarterly dividend hits or crosses the $0.8125 mark sometime in the early 2020s. Letting his winners run has allowed his wealth to compound many times over in the latter years of his life. Still, Warren Buffett seems on track to collect $3,800,719,373.25 in dividend income this year. Summary. It's also aggressively repurchased its common stock. Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting. Beyond selling the iPhone, iPad, and Mac, Apple is using its top-tier innovation to transform itself into a wearables and services giant. Of these 52 securities, 36 of them pay a dividend. Holding a 26.6% stake, Berkshire Hathaway is somewhat stuck in its position as Kraft Heinz attempts to orchestrate a turnaround and drum up interest in its core consumer-packaged brands. Warren Buffett earned $11.6 million in 2015 and paid taxes of $1.8 million. Offer from the Motley Fool: 10 stocks we like better than Berkshire Hathaway (B shares), When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. He took $10,000 in seed capital in the 1950s and has transformed it into a net worth of $88 billion. Obviously, one of the keys to Buffett's success in picking winning stocks has been his desire to hold companies for long periods of time. Stock Advisor launched in February of 2002. Because Buffett has allowed his investment thesis to play out over time with both companies, Berkshire Hathaway's yield on cost (i.e., annual dividend received relative to Berkshire's initial cost basis) is north of 50% for Coca-Cola and just over 20% for American Express. … You see, aside from the paycheck he received from his "day job," Warren earned an estimated $62,855,038 in income last year — mostly from the dividends spun off from his own personal holdings. Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) CEO Warren Buffett is arguably the greatest investor of our time. Berkshire does not pay a dividend, so the only real option is Berkshire share repurchases. Last year, Berkshire collected $3.8 billion in dividends from its investments. Berkshire Hathaway owns 400 mill... Warren Buffett and … Meanwhile, U.S. Bancorp has historically been at or near the top of the list among big banks in terms of return on assets. However, his net worth is $64.7 billion. Last year, Berkshire Hathaway received the OK from the Federal Reserve Bank of Richmond to exceed a 10% holding stake in Bank of America. Not much. Dividend stocks are the silent heroes behind Warren Buffett's investing success. Buffett Pays a lot of Taxes, on an Extremely Small Income. Investing apps make it easy for beginners: Here's how I started. Those dividend money machines accounted for practically all of his income, keeping him flush with cheeseburgers and business jets. Fractional shares, index funds, dividend stocks: How to invest if you don't have a lot of money. Coca-Cola has been a consistent holding since 1988, with American Express a portfolio fixture since 1993. Even with the Oracle of Omaha reducing his company's stake in a handful of key dividend players, such as Wells Fargo, and seeing General Motors suspend its payout, he's still in line to collect a pretty penny in dividend income in 2021. As of March 26, 2018, KO stock is worth about 17.4 times what it was when Buffett made his famous purchase in 1988, with shares selling for $42.70 each, accounting for dividends… As these two companies have appreciated in value and grown their payouts over time, Berkshire's annual yield based on the original cost basis for Coca-Cola and American Express has soared. Coca-Cola is one of Warren Buffett’s oldest top dividend stocks. Companies that pay a dividend are almost always profitable and typically have time-tested business models. Companies like Bank of America and US Bancorp have been hard at work reducing their operating expenses by closing physical branches and emphasizing digital banking and mobile apps. We’re motley! The following calculations are based on Berkshire Hathaway's 13F filing in mid-November, and it's pretty much a certainty that the company's investment portfolio will be altered throughout the year. That compares with 10% on the nose for the broad-based S&P 500 (and that's with dividends included) over the same period. The "Oracle of Omaha." Warren Buffett's love for brand-name businesses that have clear-cut competitive advantages has also resulted in a dividend income windfall. After ten years our company would have a net worth of $4,317,850 (the original $2 million compounded at 8%) and your dividend in the upcoming year would be $86,357. THE TRUTH: Warren Buffett is the greatest tax dodger of all time. That’s how much the common stock portfolio within Berkshire Hathaway collected in … Cumulative Growth of a $10,000 Investment in Stock Advisor, Here's How Much Dividend Income Warren Buffett Will Receive in 2020 @themotleyfool #stocks $AAPL $BAC $KO $AXP $BRK.A $BRK.B $USB, Buffett's success in picking winning stocks, Warren Buffett Generates Half of His Dividend Income From These 3 Stocks, 82% of Warren Buffett's Portfolio Is in These 3 Sectors, 71% of Warren Buffett's Portfolio Is in These 5 Stocks, Buffett Has Spent $67 Billion on These 3 Stocks Since 2016, Copyright, Trademark and Patent Information. Dividends! That's a nearly 500% improvement if investors chose to buy dividend stocks. The publicly traded stocks that Berkshire Hathaway owns will generate about $4.6 Billion in dividends for Berkshire this year. His entire income is essentially derived from qualified dividends and capital gains. Warren Buffett is one of the greatest investors of all time, with a staggering net worth of $80 billion dollars. The ability to identify companies with competitive advantages and the patience to see his investment thesis play out over many years, if not decades, have been key. average annual return on the company's stock of 20.3%, Here's how to set yourself up to earn $1,000 in monthly retirement dividends, How to invest if you don't have a lot of money, Your California Privacy Rights/Privacy Policy. in Economics, Sean specializes in the healthcare sector and investment planning. He bought more than $1 billion worth in 1988, and the position has multiplied since. Berkshire bought back 80,998 of its class “A” shares last year, spending about $24.7 billion. 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